Unilever slashes Singapore jobs and closes home and skin-cleansing production in Nigeria

24 Jan 2024 --- Unilever is shifting its global business practices by shutting down home care and skin-cleansing product production in Nigeria and laying off workers in Singapore. 

Reports say Unilever is also reducing its marketing teams for its personal care brands, such as Dove, Lux and Lifebuoy in Singapore. The company announced the layoffs to affected staff just before Christmas. 

“As we continue to respond to the needs of our consumers faster, we have taken the strategic decision to relocate some personal care roles, currently based in Singapore, to our markets across Asia,” a Unilever spokesperson tells Personal Care Insights.

Meanwhile, Unilever Nigeria plans to exit the home care and skin-cleansing product markets, stopping production and sale of the corresponding products. It will continue production in other categories. 

Ending production
In March 2023, Unilever Nigeria announced it would exit the home care and skin cleansing markets to reposition its business for “sustained profitability.”

“Unilever Nigeria recently celebrated its centenary in the country, is the oldest continuously operating manufacturing company in the country, is fully committed to staying in the country and took a strategic decision to reshape the portfolio in 2023 to focus on more profitable categories by dropping three brands Omo, Sunlight and Lux,” the Unilever spokesperson tells us.

Unilever changes up which markets to focus on.Production and sales for home care and skin cleansing business categories ceased last December. In a statement, Unilever said: “This will involve repurposing the portfolio by exiting the home care and skin cleansing categories to concentrate on higher growth opportunities.”

The factory was leased out to a third party for ten years, with annual rental payments.

“Unilever Nigeria’s exit from the home care and skin-cleansing markets leaves the company with just the foods, beauty and well-being, as well as personal care products,” says the FMCG company.

Before Unilever Nigeria’s exit from both markets, the company reported a decline in revenue and increased losses.

Singapore job losses
According to reports, several roles will remain in Singapore, while some will no longer be required.

“A number of roles will remain in Singapore, while some roles will be impacted. We are doing everything we can to support our colleagues during this time,” the Unilever spokesperson tells Personal Care Insights.

Unilever previously cut 169 jobs in its New York plants in November 2023.

Boosting “power brands”
In its last quarter, Unilever said it would focus on 30 “power brands” — representing 70% of turnover. It revealed plans to “selectively optimize the portfolio — no major or transformational acquisitions.”

In October, it offloaded Dollar Shave Club and last month, the Elida Beauty division which included brands from Q-Tips to Pond’s skin care. 

It recently acquired the biotechnology hair care brand K18 as part of previously announced plans to focus on “higher growth areas.”

By Sabine Waldeck